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CA Final · Indirect Tax Laws · Place of Supply

Konark Engineering, Bhubaneswar, supplies a prefabricated turbine and agrees to assemble it at the plant of Deccan Power Ltd (registered, head office in Bengaluru) at Raichur, Karnataka. The goods are moved from Bhubaneswar to Raichur. Separately, Konark supplies a standalone generator, with no installation, to Anita, unregistered, whose name and State, Kerala, are recorded in the invoice, and delivers it to her at Mysuru. Which pair of places of supply is correct?

Turbine: Raichur; generator: Kerala. Goods assembled or installed at site take the installation place as place of supply. For a supply to an unregistered person, the address recorded in the invoice decides, and recording only the State is deemed recording of the address, overriding the delivery location.

  1. ATurbine: Raichur; generator: KeralaCorrect
  2. BTurbine: Raichur; generator: Mysuru
  3. CTurbine: Bengaluru; generator: Kerala
  4. DTurbine: Bhubaneswar; generator: Mysuru

Explanation

Goods assembled or installed at site have the place of supply at the place of installation, Raichur. For the generator, the recipient is unregistered, so clause (ca) applies and recording of the State name is deemed recording of the address. The place is Kerala, not Mysuru where delivery occurs. Bengaluru, the head office, is irrelevant.

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